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The irrationality of payment behaviour

Author

Listed:
  • Frank van der Horst
  • Ester Matthijsen

Abstract

Despite the efforts that commercial banks have made to promote the use of debit cards and the introduction of new payment methods, the migration from cash to electronic payment methods is not proceeding as quickly as sometimes expected. Why do people pay by cash on one occasion and by bank card on another? How conscious is people's decision-making? How rational are their reasons for choosing one method over another? For policy makers at a central bank it is relevant to have insight into the psychological aspects and effects of payment method choice, because it provides a pointer to the rules that payment methods will play in the future. Also these insights are helpful if an authority wants to encourage the usage of a specific means of payment.

Suggested Citation

  • Frank van der Horst & Ester Matthijsen, 2013. "The irrationality of payment behaviour," DNB Occasional Studies 1104, Netherlands Central Bank, Research Department.
  • Handle: RePEc:dnb:dnbocs:1104
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    File URL: https://www.dnb.nl/en/binaries/OS%201104%20WEB_tcm47-294816.pdf
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    Cited by:

    1. Carin van der Cruijsen & Frank van der Horst, 2016. "Payment behaviour: the role of socio-psychological factors," DNB Working Papers 532, Netherlands Central Bank, Research Department.
    2. Nicole Jonker & Mirjam Plooij & Johan Verburg, 2015. "Does a public campaign influence debit card usage? Evidence from the Netherlands," DNB Working Papers 470, Netherlands Central Bank, Research Department.
    3. Tobias Trütsch, 2016. "The impact of mobile payment on payment choice," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 30(3), pages 299-336, August.
    4. Seitz, Franz & Krueger, Malte, 2017. "The Blessing of Cash," International Cash Conference 2017 – War on Cash: Is there a Future for Cash? 162911, Deutsche Bundesbank.
    5. repec:taf:applec:v:49:y:2017:i:30:p:2989-3004 is not listed on IDEAS
    6. Carin van der Cruijsen & Mirjam Plooij, 2015. "Changing payment patterns at point-of-sale: their drivers," DNB Working Papers 471, Netherlands Central Bank, Research Department.
    7. Carin van der Cruijsen & Lola Hernandez & Nicole Jonker, 2017. "In love with the debit card but still married to cash," Applied Economics, Taylor & Francis Journals, vol. 49(30), pages 2989-3004, June.
    8. Gabriele Camera, 2016. "A Perspective on Electronic Alternatives to Traditional Currencies," Working Papers 16-32, Chapman University, Economic Science Institute.

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